Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1887-12-15

/ Revision of the Tariff the Only Remedy
Home Consumers and Manufacturers To Be
Benefited by Reduction of Certain Import
Dutes-An Argument from the Wool Grow
ing Business.
WASHINGTON CRY, Dec. 7.-President Glove
| land sent his annual message to congress Tues
| day. It treats solely of the treasury surplus and
| tariff question, and is as follows:
To THE CONGRESS OF THE UNITED STATES:
| Yon are confronted at the Threshold of your
| Legislative duties with condition Of the
| Immediate and careful consideration. The
| amount Of money annually received through the
| operation OF present laws, from the industries
and necessities OF the people, largely exceeds
the sum necessary to meet the expenses OF the
/ government. When we consider that the theory
| OF our institutions guarantees to every citizen
| the full endowment Of the fruits Of his industry
| and enterprises with only such deduction as
| may be his share toward the careful and eco
nomical maintenance of the government which
| protects him. it is plain that the exaction OF
| more than this is indefensible and culpable
/ betrayal OF fairness and justice. This wrong in
| hicted upon those who bear the burden OF ma
| uonal taxation, like other wrongs, multipies O
| brood OF evil consequences. The public treas
| ury, which should only exist as a conduit con-
veying the peoples tribute to its legitimate OBJ
| Jects OF expenditures, becomes a boarding place
| for money needlessly withdrawn from trade and
the peoples use, thus Gripping our national en-
ergies, usurping our country.s development, pre-
venting inves ment in productive enterprises,
| threatening financial disturbance, and inviting
! schemes OF public plumber.
This condition OF our treasury Is not altogether
new and it has more than once of late been sub.
mitted to the peoples Representatives in the con-
| gress who alone can applya remedy. And yet
the situation still continues, with aggravated in
| cidents, more than presaging financial con-
vulsions ard widespread disaster. It will not
| do TO neglect this situation because its dangers
| are not now palpably imminent and apparent
| They exist none the less certainly and the unfor.
| seen and unexpected occasion may come when
suddenly they will be precipitated upon us.
On the 30th day of june 1885, the excess of
| revenue over public expenditure after complying
with the annual requirement Of the sinking fund
| act was ST., $50. 1854; during the year ended
juno so, 1886, such excess amounted to $40, 405-
/ 54520; and during the year ended june so, 1887,
| it reached the sum of 800 567, 84954 The annual
| contributions to the snkng-fund during the
| three years above speclfed, amounting in the
aggregate to $l3s, 05s. 800 "a. and deductng from
the surplus as stated We're made by calling in for
| that purpose outstanding 3 per cent bonds
of the government. During the six months prior
| to June 81, 1887, the surplus revenue had grown
| so large by repeated accumulatons, and it was
| feared the withdrawal Of this great sum of money
needed by the people, would so affect the BUSH
| ness of the country that the sum of
| S79 s64,l00 Of such surplus was applied to the
| payment of the principal and interest OF the
) per cent. bonds still outstanding, and which
were then payable at the option OF the govern
ment. The precarious condition OF financial af-
fairs among the people still needed relief Imme-
diately after the 30th day Of June, 1887 tho re-
| mainder OF the per cent bonds thus outstand-
| ing amounting, with principal and interest, to
the sum OF SIS, ST, 500 were called in and ap-
Piled to the sinking fund contribution for the
current fiscal year, Notwithstanding these opera
| atoms of the treasury department representa-
tions of distress in business circles not only con-
| tinued but increased, and absolute peril seemed
| at hand. In these Giro umstances the contribu-
| ton to the sinking fund for tho current fiscal
| year was at once completed by the expenditure
of S27, 6S4, 2S3 IS in the purchase of government
| bonds not yet due bearing AZ per cent interest
| the premium paid thereon averaging about "a
cent. former tba
latter. In addition to this the interest accruing
| during the current year upon the outstanding
| some extent anticipated and banks selected as
| repositories Of public money were permitted to
| somewhat increase their deposits.
While the expedents thus employed, TO re-
lease to the people the money lying in the treas
| ury, served to avert immediate danger, our sur
| plus revenues have continued to accumulate, the
excess for the present year amounting the LIST
day of December to SIS 25S 81 10 and estimated to
reach the of Sl130 900, 600 on the 30th OF June
next, at which date it is expected that this sum,
added to prior accumulations, will swell the
plus in the treasury TO Sl400000O0
There seems to be no assurance that with such
a withdrawal from use of the peoples circulat-
| ing medium our business eommunit may not in
the future be subjected to the same distress
which was quite lately produced from the same
cause. And while the functions OF our national
treasury should he few and simple, and while
the best condition would be reached, Il believe 10y
its entire disconnection with the private business
interests, yet when, by perverslon OF it's pur.
poses, it idly holds money uselessly substracted
from the channels Of trade, there seems to be
sons for the claims that legitimate means should
be devised by the government to tore in an
emergency, without waste or extravaganza. such
money to its place among the people.
II such an emergency arises the now exists
no clear and undoubted executive power Of re-
| lief Heretofore the redemption OF the per
cents only which were payable at the option of
| the government, has afforded means for the
| disbursement of the excess of our revenues but
these bonds have all been retired, and there are
no bonds outstanding the payment OF which we
Inv fba ioh tn N ct bQ Ot1ib
| to the sinking fund, which furnishes tho occa-
sion for expenditures in the purchase Of bonds,
has been already made for the current year. so
| there is no outlet in that direction.
In the present state of legislation the only
pretense of any existing executive power to re-
store at this time, any part OF our surplus reve
nues to the people by its expenditure. consists
| in the superstition that the secretary Of the
treasury may enter the market and purchase the
| bonds OF the government not yet due, ut O rate
| OF premium to be agreed upon.
The only provision of law from which such
| power could be derived is found in an APP
| preparation bill passed number Of years ago,
| and it is subject to the superstition that it
| intended temporary and limit d i'll its APP
| plication instead Of comforting continuing dis
| erection and authority. No condition ought to
! exist which would justify the grant IT power to
/ a single official upon his judgment OF its reces-
| sty, to withhold from or release to business Of
| the people in an unusual manner money held in
| the treasury. and thus affect, at his will, the
| financial situation OF the country and il it Is
| deemed wise to lodge in the secrf tary of the
treasury the authority IN the present juncture to
! purchase bonds, it should be plainly vested, and
! provided as far as possible, with such checks
and limitations will define his official right
| and discretion and at the same time relieve him
| rom undue responsibility,
In considering the question OF purchasing
bonds as means Of restoring to Giro lletion the
! surplus money accommodating in the treasury, 1t
| should be borne in mind that premiums must
OF course be paid upon such purchase that there
| may be large part of these bonds held as in
| vestments which can not be purchased at any
price and that combinations among holders who
| are willing to sell, may unreasonaDy enhance
| the cost OF such bonds to the government
| It has boon suggested that the present bonded
! debt might be refunded at less rate of interest
/ and the difference between the old and new Sc
/ curities paid in cash, thus finding use for the
1 surplus in the treasury. the success OF this
/ plan, it Is apparent, must be founded upon the
voiition Of the holders OF the present bonds; and
/ it is not entirely certain that the inducoment
which must be offered them would reduce the
| principal of the debt by actual payment, instead
| Of extending it. The proposition to deposit the
money held by the government in banks
! throughout tho country, for use by the people,
is, it seems to me, an exceedingly Objectionable
| principle as reaching too close relationship be-
| tween the operations OF the government to the
/ business Of the country and the extensive COM
| ningling of their money, thus fostering an I'M
| natural reliance in private business upon public
| funds. II this scheme should be adopted 1t
/ should be done as temporary expedient TO meet
/ an urgent necessity Legislative ana executive
! effort should nerally be in the opposite direc-
ton aud should have a tendency to divorce, as
much and as fast as can be done the treat ury
1
| il is not expected that unnecessary and extrava-
CANT operations will be made for The purpose OF
avoiding the accumulation OF an excess Of revenue
] such -. ndtufe, besides the demor alization OF
| all just nceptions OF public duty which it en-
/ tails emulates a reckless iIuprovidence not in
the least censis tent with the mission of our peo
| pie or the high benefcent purposes OF our gov
| eminent.
/ have deemed II my duty thus to bring to the
4 knowledge of my cOuntrylnen as well as to the
attention of their representatives to the respon-
sbility of legislative relief, the gravity OF our
| financial situation. The failure OF the congress
| heretofore to provide against the danger which
it was quite evident the very nature OF the diff
hculty must neces sary produce, caused condi-
ton # financial distress and apprehension since
| their last adjournment which taxed 70 the Ut
most all the authority and expedients within eX-
| ecutive control; and these appear now to be ex.
hausted. II disaster results nom the continued
inaction OF congress the responsibility must rest
/ where it belongs.
The situation thus far is fraught with danger
| which should be fully realized. and though It
presents features of wrong to the people as well
as to the country. il is but result growing out
OF perfectly palpable and apparent cause con-
stantly reproducing the same alarming circum-
I stanees-a congested national treasury and q de-
pleted monetary condition in the business of the
country. It need hardly ne stated that while the
| present situation demands remedy can only
be savel from predicament in the future by
/ the removal of the cause.
Our scheme OF taxation by means Of which this
needless surplus is taken from the people and
put iato the public treasury, consists OF tariff
/ or duty levied upon iuportations from abroad
and internal revenue taxes levied upon the con-
sumption Of tobacco and spiFituous and matt
lixuors. 1t must be considered that none OF these
taxes relating to hngs subjected to Internal rev
enue taxation are strictly speaking, necessary,
and it appears to be no just cause OF complaint
OF the consumers OF the articles, and there seems